If you’re a big fan of technical analysis and bear flags like I am, you’ll love Ford (F) right now.

We’re seeing price in a downtrend rally toward a critical resistance pivot in a Bear Flag… and then break (collapse?) beneath the trendline this morning after falling from the resistance pivot.

It’s a great lesson and perhaps a better trade set-up right now. Here it is:

On a separate lesson, a Symmetrical Triangle developed in early 2017.

Note how volume declined as the pattern formed – that’s a textbook pattern example.

Price ejected beneath the lower trendline, setting up a Breakout Trade that was wildly profitable for bears/short-sellers.

In May after price completed a sharp liquidation phase, buyers stepped up their game, bouncing price higher up away from the $10.00 per share level on a persistent positive momentum divergence.

Green volume and momentum surged on the initial breakout , but look what happened next.Momentum and Volume both declined – diverged negatively – as price rallied up toward the underside of the falling 200 day SMA (red line).

This critical “Make or Break” pivot was an excellent aggressive short-sale trade set-up – a retracement.